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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 61234
Experience:  Qualified Employment Solicitor
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I just want to know what is a settlement agreement

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Hi I just want to know what is a settlement agreement
Assistant: Was this discussed with a manager or HR? Or with a lawyer?
Customer: Noone
Assistant: Does the workplace operate with employees, freelancers, consultants, contractors or with unionised employees?
Customer: Employees
Assistant: Anything else you want the lawyer to know before I connect you?
Customer: No

Hello, my name is***** am a qualified lawyer and I will be assisting you with your question today.

Please explain your situation in a bit more detail

Customer: replied 5 months ago.
I am an employer. I am looking to offer a settlement to a long service employee, I just want to know what is the process and what I need to include
Customer: replied 5 months ago.

A settlement agreement is a formal contract between an employer and employee where the employer agrees to pay off an employee who in turn agrees not to make certain claims against the employer. As this can be a complex agreement you are advised to get it drafted by a solicitor to ensure that it covers all relevant factors which you need it to. The employee then needs to see a solicitor separately to get advice on the contents of the agreement before it is signed by both parties to make it legally binding

Customer: replied 5 months ago.
What sort of payment would it need to include

well that is for you and the employee to agree on, it obviously has to be something which is sufficient to make them agree to it and give up the right to claim in the future

Customer: replied 5 months ago.
Does it not need to atleast include statutory notice pay and any accrued annual leave remaining
Customer: replied 5 months ago.
to cover the legal costs for the employee to around 250+

It should do because the employee may then be getting less than what they are due by law and it would make no sense for them to agree to the settlement agreement

and yes the legal costs are usually covered by you

Customer: replied 5 months ago.
What if I want this settlement to be confidential but the employee goes to mention it to other employees that he was offered a settlement. Can I discipline him for this act

you can include it in the agreement that it should be confidential and then that would be a breach of contract if they mention it and then you can withdraw it if needed, but not discipline them for it

Customer: replied 5 months ago.
I see that's great thank you very much. And what is section 111a of the ERA act 1996

This allows you to have a protected conversation about the settlement without it being mentioned in the future

https://www.shoosmiths.co.uk/client-resources/legal-updates/off-the-record-conversation-with-an-employee-11161.aspx

Ben Jones and other Employment Law Specialists are ready to help you
Customer: replied 5 months ago.
Thanks that's great, I know all this and was just teating you ;)

Ah..good job I didn't write an essay on it ;)